Armenia may prioritize development of small hydropower plants and wind plants in a short-term perspective, while geoenergetics in a mid-term one, the Director of Armenia Renewable Resources and Energy Efficiency Fund Tamara Babayan said.
26 small hydropower plants have been constructed in Armenia for the last three years at the assistance of the Fund, out of which 24 are already put into operation. The average loan received by owners for construction of hydropower plant amounts to some AMD 1mln. under 10-12% annual, with the term of 7-8 years within the framework of different programs, including KfW, European Bank for Reconstruction and Development and others. The recoupment process for small hydropower plants makes 4,5-7 years depending on the technology used, which makes the filed rather profitable.
“This is proved by numerous licenses granted by Public Services Regulatory Commission for hydropower plants construction. If I am not mistaken, from 2003 up to date some 130 licenses have been issued,” Babayan said.
As regards environment protection norms the Director assured that the Fund does not assist those projects on hydropower plants construction which fail to meet the requirements and also those which are assessed high on the part of international structures when providing financial assistance.
Moreover, Armenian legislation regulating this field is the most favorable among other CIS countries; however there also are some barriers, according to her, including issuance terms of licenses for construction amounting to 280 days which is not very admissible for an investor.
